The idea behind this exercise is for the class to generate data comparing companies in many different industries. These data will be used to compare these industries from an operations and supply chain view to better understand differences. Be prepared for a lively class discussion for this section.

Step 1: I would like you to compare efficiency measures of the following companies:

1. Johnson and Johnson. (JNJ)
2. Pfizer. (PFE)
3. Abbott Laboratories. (ABT)
4. Merck and Co Inc. (MRK)

Step 2: Collect data related to each company. At a minimum, find the income per employee, revenue per employee, receivable turnover, inventory turnover, and asset turnover for each company. These data are available under Rates and Ratios. Then, select Financial Ratios on the Web site.

Step 3: Compare the companies based on what you have found. Which company appears to have the most productive employees? Which company has the best operations and supply chain processes? Which company is most efficient in its use of credit? Which company makes the best use of its facility and equipment assets?

Step 4: What insights can you draw from your analysis? What could your companies learn from benchmarking each other?